7 May 2011

Compound semi firms diversify as handset market presents price erosion

Even while the handset portion of the compound semiconductor market remains the largest revenue producer, leading device suppliers are diversifying their portfolios by developing additional products for infrastructure, broadband and military applications, notes the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) viewpoint ‘Compound Semiconductor Industry Review March 2011: Microelectronics’.

The viewpoint from market research firm Strategy Analytics summarizes March's technology, product, contract, financial and employment developments for microelectronic firms such as RF Micro Devices, Skyworks Solutions, Hittite Microwave, Anadigics, TriQuint Semiconductor, Analog Devices and NXP addressing commercial and military applications using gallium arsenide (GaAs), gallium nitride (GaN), silicon carbide (SiC), and complementary metal-oxide-semiconductor (CMOS) technologies.

“The handset market continues to drive compound semiconductor volume, but rapid price erosion poses a challenge for suppliers,” noted Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “The March product announcements show activity aimed at CATV, fiber, military and test and measurement markets, as companies try to capture higher-margin opportunities,” he adds.

“Some companies are expanding product lines into defense and broadband, which uses new processes to diversify market penetration,” comments Asif Anwar, director, Strategy Analytics Strategic Technologies Practice.

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Tags: Handset shipments

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